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Procedia - Social and Behavioral Sciences 40 (2012) 478 – 484

2012 International Conference of Asia Pacific Business Innovation and

Technology Management

Preliminary Study on the Community-Based-Eco-Industrial

Estate Development of Northern Region Industrial Estate,
Thailand
V. Panyathanakun a, S. Tantayanon a, C. Tingsabadh a, and K. Charmondusit b *
a
Technopreneruship and Innovation Management Programmes, Chulalongkorn University, Bangkok 10330, Thailand
b
Eco-Industry Research and Training Center, Faculty of Environment and Resource Studies, Mahidol University, Salaya,Campus,
Nakorn Prathom 73170, Thailand

Abstract

Imitating the natural eco-system, the eco-industrial estates emerged as one of effective ways to manage industrial
systems. Aiming to create a sustainable industrial ecosystem required balancing of demand and supply of materials,
energy, and wastes. Eco-industrial estate development strategies initiated by the Industrial Estate Authority of
Thailand (IEAT) were announced to industrial estates and public, which consisted of 5 aspects and 22 areas and
claimed as business model initiatives. At the present, industrial estates throughout the country are being transformed
to eco-industrial estate and network. Preliminary study on the Community-Based-Eco-Industrial Estate (CBEIE)
development of Northern Region Industrial Estate (NRIE), Thailand was focused. Findings from the survey,
suggestions and improvement needs were recommended by respondents in order to build stakeholders’ trust and to
balance their mutual benefits for further CBEIE development of NRIE.

*Corresponding author. Tel.: +662-4415000, ext: 2309; fax: +662-4419509-10

E-mail address: enkcm@mahidol.ac.th, eco4industry@hotmail.com

© 2011 Published
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Keywords: Eco-industrial estate ;Community; Industrial ecology; Northern region industrial estate; Stakeholders’ collaboration

1. Introduction

The environmental deterioration has enforced firms and organizations worldwide to manage and adapt
their business processes to promptly respond to global trade rules and regulations. One of the innovative
ideas to deal with the impact of environment and human life emerged from the admiration of the natural
ecological system. As natural ecosystem demonstrates efficient recycling of resources, the industrial

1877-0428 © 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the Asia Pacific Business Innovation and Technology
Management Society Open access under CC BY-NC-ND license.
doi:10.1016/j.sbspro.2012.03.219
 V. Panyathanakun et al. / Procedia - Social and Behavioral Sciences 40 (2012) 478 – 484 479

system likewise perceives as the most effective way if raw material is converted into products with zero
effluent [1]. The mechanism of natural systems could heel and manage the system components without
leftover waste. Using nature as a model, imitating the natural eco-system could lower environmental
deterioration.
Theoretically, Industrial Ecology is a closed-loop system similar to nature which is self-organized and
complex. It is, hence, very difficult to intentionally plan, design and manage. The industrial ecosystems in
particular regions are different with their own economic, social, cultural and ecological characteristics.
System standards provide visibility of readiness of firm and industry in turning eco-industrial concept into
reality. Furthermore, firms’ collaboration enhances a collective benefit through increasing environmental
and economic performances [2];[3];[4]. It is then important to study the stakeholders’ involvement in an
eco-industrial system because their decision influence to the amount of round-put flows and level of
cooperation to utilize wastes and by-products generated from the processes [5]. The interaction among
actors in the eco-industrial system is complicated and became network phenomenon [6]. Researchers also
criticized that level of collaboration in inter-organizational network represents success or failure of the
system [7]. The community, industry, and government were normally pursued to participate in network
from the beginning of development. This is to build trust and willingness from every member [8].
Therefore, creating a sustainable industrial ecosystem required balancing of demand and supply of
materials, energy, and wastes. Following guidance along Business model initiatives led by the Industrial
Estate Authority of Thailand, industrial estates throughout the country are being transformed to eco-
industrial estate and network.
This paper aims to present the preliminary study on the development of Community-Based-Eco-
Industrial Estate (CBEIE). The Northern Region Industrial Estate (NRIE), which locates in Lumphun
province, north of Thailand, was chosen as a case study. Findings from the survey, suggestions and
improvement needs by local respondents were illustrated. Finally, the further development of NRIE
towards to CBEIE was discussed.

2. Thailand and Eco-Industrial Estate Development

The Industrial Estate Authority of Thailand (IEAT) is a state enterprise under the Ministry of Industry,
established in 1972. As a governmental mechanism, IEAT is responsible for the development and
establishment of industrial estates throughout Thailand. Apart from those roles, the IEAT aims to support
the private business sector by encouraging and providing instruction of an effective management system.
The IEAT targets to achieve the eco-industrial settlements under core basic principles, which are
sustainability of economics, society, environment and quality of life [9].
In 2000, the IEAT introduced the eco-concept to existing industrial estates. It was called the Eco-
Industrial Estates Development (EIED) and implemented during 2001-2004. The Eastern-Seaboard
Industrial Estate, the Northern Region Industrial Estate, Bang-poo Industrial Estate, Map Ta Phut
Industrial Estate, and Amata-nakorn Industrial Estate were selected from established locations as pioneers
to implement the concept [10].
In 2004, the progress of the pioneer industrial estates was reported in the 2nd International Conference
& Workshop for Eco-Industrial Development which was held on March 7-12, 2004 [10]. Some degree of
achievement in creating awareness, promoting collaboration and gaining financial benefit from projects
were recorded [12]. However, lacking eco-concepts and knowledge of the participating companies in the
industrial estates, as well as a lack of awareness among staff and public were indicated as improvement
needs. Furthermore, the taxation system of the export zone seems to create high barriers of waste
exchange among members. Technical support on cleaner technology was raised up and requested by
members inclusively. However, the EIED project was discontinued in 2004. Based on some key
stakeholders’ input, the changes in organization and structure of the IEAT likely led to an ineffective
480 V. Panyathanakun et al. / Procedia - Social and Behavioral Sciences 40 (2012) 478 – 484

follow-up. Moreover, real trust and mutual benefit among stakeholders rarely existed and this was
perceived as crucial cause of the obstruction.
In 2009, Thailand industrial investment was severely impacted from the environmental problem in
Map Ta Phut industrial estates. Learning from the crisis, the Eco-Industrial Estate and Networks (EINs)
project was proposed by the IEAT in early 2010. The sustainability development and EIED concept were
re-launched and planed to exercise in 2010-2014. Recently, on the 7th of September 2010, a broader scope
and approach to the eco-industrial system were announced to the public and broadened the approach from
the eco-industrial estate to the eco-industrial estate & network. The project was initially promoted in 2010
at three pilot industrial estates. The 1st phase of eco-industrial estate development consisted of the “Bang
Poo Industrial Estate”, the “Northern Region Industrial Estate”, and the “Eastern Seaboard Industrial
Estate”. Gradually increasing 3 EINs per year to reach total 15 eco-industrial estates by 2014 is the
ultimate target. The 2nd phase is now under way to transform the rest of industrial estates in Thailand to
completely achieve eco-indicators by 2019. Here, new initiatives of 5 aspects and 22 areas were initiated
by the IEAT, announced to the public in a conference conducted on the 9th of September 2010 as
described in table 1 [11].

Table 1. The IEAT Business Model Initiatives’ 5 Aspects and 22 Areas

Aspects Objectives Area

Physical To achieve a proper landscaping plan and • Eco-design

good infrastructure development
• Eco-center

Economical To achieve growth and sustained economy • Economy of industries

• Growth of local
• Economy of community
• Marketing
• Transportation and logistics

Environmental To encourage the efficient use of resources • Water management

• Air pollution management
• Industrial wastes
• Energy
• Noise
• Health & Safety
• Environmental monitoring
• Industrial process
• Eco-efficiency

Societal To encourage a better quality of life of • Quality of life of worker

people
• Quality of life of community

Managerial To establish a systematic management • Collaboration

process and continuous improvement
• Improvement of quality of people
• Improvement and maintenance of
management system
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• Information and report

3. A Case of the Northern Region Industrial Estate of Thailand (NRIE)

The Northern Region Industrial Estate of Thailand (NRIE) is located in Lumphun province in the
northern part of Thailand at the 69-70 km. mark on Lampang-Chiangmai highway (highway no.11). The
total area of the estate is 1,788 Rai.(706.92 acres approximately) in operation since 1985. Lumphun was
initially planned to support overseas investors who looked for a low cost manufacturing location.
Updating on December 2009, there are 82 factories in total located in the Northern Region Industrial
Estate. Electronics (as a major manufacturing base of the country), machineries and equipment, food
products and jewelry and accessories contribute 32%, 22%, 13%, and 13% respectively. Additional to
asphalted concrete roads and a telecommunication system and electric power supplied by the Provincial
Electricity Authority (PEA), other public utilities and facilities to support industries are fully equipped. A
water plant to supply 20,400 cubic meters per day and a 500,000 cubic meters reservoir is located on the
industrial estate in addition to a fully established central waste water treatment plant for organics loading
rate of 6,000 kg BOD per day [9].
The NRIE was recently appointed by the IEAT as one of pioneer estates for the EINs project
implementation. The industries in this estate area experienced some eco-industrial concepts and activities
as some of them participated in the EIED projects in 2000. The authors, then, appointed the NRIE of
Thailand as case studies in this research and recommended the collaboration between industrial sectors in
the estate and local community, which could be defined as a CBEIE and as a strongly issue for the
development of eco-industrial estate in the NRIE.

4. Analysis Pathway to Establish the Community-Based-Eco-Industrial Estate in the NRIE

Researchers participated in some academic work and discovered some useful inputs. Direct
observation in several meeting organized by the NRIE was observed (the Environment Initiatives
Assessment (EIA), Factories audits, and CSR year plan meeting), including with primary information
collected from a field survey of “greening industry” project conducted during January 2011. These
information help initially assess the readiness of key stakeholders who mandatory participate in the
CBEIE development of the NRIE.

Direct observation in the stakeholders’ meetings and activities

Finding from official EIA monitoring reports, the pollution emission from industries is tremendous
improved and under controlled at the present [13]. There are many activities and programs organized by
the IEAT but it more likely presented that mutual gain from stakeholders’ collaboration is rarely existed
in the NRIE. Here, some evidences support the quotes indicated as following cases;
• In quarterly EIA monitoring meeting, an official place that allowed all stakeholders to speak out
and share their concerns, it seems the industries and communities were not very well get along
each other. Moreover, complaining on repeating issues were observed without proper solutions.
• In the environmental monitoring activities in Jan 2011, community representatives were invited
to participate in an audit team for walking through few appointed factories. The program was not
fully successful in the eyes of industries as management of a factory had criticized that he did not
willing to join the program, unfortunately his factory did because of close relationship with the
NRIE’s officers. Factory was rather unsatisfied with the community as the urban tax and utility
fees have been collected by communities with zero economic return.
• Even though, the CSR activities of the NRIE have seen much progress and gained high
recognition from other IEAT members, but an effective collaboration among members was yet
482 V. Panyathanakun et al. / Procedia - Social and Behavioral Sciences 40 (2012) 478 – 484

achieved. Lacking follow-up progress of activities, blaming each other on environmental

concerns issues that repeatedly occurred (traffic congestion during rush hours, bad odors released
from industries, communities’ smoke and dust from garbage burning, etc.), and no effective
solution provided to team, were seriously criticized by stakeholders.

Community’s attitude survey

A descriptive research on a topic of “Greening industry” was conducted during January 17-22, 2011.
The research aimed to investigate the local community’s perception and attitude towards industries
located in the NRIE (Lumphun) as well as to observe the “green” activities in two major industrial
clusters which are electronics and foods and agriculture. The research was two folds, field survey to
surrounding communities and observation to industrial production process. Questionnaire survey was
randomly distributed and collected form respondents who live in five surrounding communities, 5 kms in
radian of the NRIE. With 500 sampling size distributed, 421 case responded (84.2% responded rate).
Inputs from respondents were consolidated, 16 topics under three groups of problems and concerns were
identified as following Table 2.
According to our finding, pollution and social problem implied a huge gap in achieving co-existing of
industry and community as 89.66% of respondents perceived them as priority. Air, Waste Water, and
Odours represented the top three of community feedback under pollution category. Whereas, traffic
congestion, job opportunity, and poor quality of life indicated as major social problem originated from the
growth of industries in Lumphun at the present (Table 3).

Table 2. Category of issues and concerns of the residential area, surrounding the NRIE

Category Issues/ Concerns % Respondent % Total

• Poor practice 3.45
Management • Lack of collaboration 3.45
• Lack of trust 1.72
• Lack of awareness 1.72 10.34

• Air 12.07
• Waste water 12.07
Pollution • Odours 10.34
• Toxic material 6..90

• Noise 6.90 48.28

• Traffic congestion 20.69

• Job opportunity 6.90
• Poor quality of life 5.17
Social • Crime 3.45

• Accident 1.72

• Lack of green area 1.72

1.72 41.38
• Poor urban planning

Further findings from the survey, suggestions and improvement needs were recommended by
respondents and can be grouped into 5 areas; eco activities, audit and control, IEAT management
improvement, knowledge and awareness, and communication (Table 3). Respondents perceived that Audit
and Control mechanism, Management improvement, and Eco-activities are the priority to support the co-
existing of community and industry. In the meanwhile, people knowledge and awareness and
communication among IEAT, industry and community seems rather important and cannot be ignored.
 V. Panyathanakun et al. / Procedia - Social and Behavioral Sciences 40 (2012) 478 – 484 483

These finding significantly reflected a lack of systematic process as a tools to boost-up the eco-industrial
estate and networks in the NRIE.
Table 3. Improvement needs, input from the residential area

Category Issues/ Concerns % Respondent % Total

Eco activity • Increasing green area 11.63
• Increasing co-activity 3.88
• Providing support 1.55
• Reducing fuel consumption 0.78 17.83
Increasing eco/ green • To community 4.65
concept, knowledge,
• To firm 4.65
and awareness
• To employee 1.55 10.85
Audit and Control • Methodology 26.36
• Seriousness 9.30 35.66
Improvement of IEAT • Approach and practice 24.03
management
• Expanding buffer zone 1.55
• Environment and landscape 1.55
• Collaboration 0.78 27.91
Communication • Frequency 3.88
• Openness 2.33
• Channel 1.55 7.75

5. Discussion

Even through the industry presents willingness to support activities organized by the NRIE but reason
of their participation was vague. In some case, industry felt that they were enforced to cooperate in
activities. This indicated that industry’s attitudes to community are remained traditionally unchanged. The
notion of “community to take and industry to give” made their mutual benefit imbalanced and
“community lacks knowledge” made trust rarely existed.
Authority to manage industry in the resident area, moreover, was also changed. According to state’s
law and regulation, it will hand over to municipality and community to in-charge of control and manage
factory located in the area. Industry investment in green area or eco-activities was seen as extra expenses
in the eyes of factory because amount of local tax collection was never reduced.
These findings will need further investigation on how to build trust among stakeholders and how to
balance their mutual benefit. Being a CBEIE, it demands not only developing stakeholders’ capability but
also mechanism to encourage them to enhance innovative collaboration. Without it, plan to transform the
NRIE to eco-industrial estate and networks will not be achieved.

Acknowledgements

The work in this article was supported by the 90th Anniversary of Chulalongkorn University Fund
(Ratchadaphiseksomphot Endowment Fund). The authors gratefully acknowledge to the
Technopreneruship and Innovation Management Programmes, Chulalongkorn University and Eco-
484 V. Panyathanakun et al. / Procedia - Social and Behavioral Sciences 40 (2012) 478 – 484

Industry Research and Training Center, Mahidol University. The authors also would like to express our
sincere appreciation and thank to NRIE staffs for their support throughout the field study.

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